Eagle Accounting processes actions of ownership between the issuer of a security and the holder of the debt instrument as a corporate action.
Eagle's Accounting solution allows you to set up and process all types of corporate actions. A corporate action is any pending or completed action taken by an issuing corporation that affects the financial and/or physical status of any type of security. A financial status change is an action that influences the original cost, market value, or income earned on that security. A physical status change is an action that changes the appearance of the actual stock certificate. Corporate actions can be modified and cancelled before the ex-date, the date that acts as the "effective date" for the announcement.
The system classifies the action between the issuer and the holder of the security as mandatory or voluntary. Mandatory Actions are non-voluntary actions in which holders of the debt Instrument have no choice but to accept the action set upon them by the issuer. The details of a mandatory action are constant for all owners of the bond. Voluntary Actions are actions either initiated by the holder of the debt instrument or specific to a way in which a holder wants to account for a corporate action by the issuer. Thus a voluntary action by a holder of the debt does not affect other holders of the debt.
With corporate actions that apply to fixed income securities, you can do the following:
- Set up and process fixed income corporate actions
- Understand corporate action types
- Add corporate action announcements
- Add voluntary corporate action entity elections
- Process corporate actions in Global Process Center
- Manage calls, puts, and prerefund corporate actions
- Manage partial prerefund corporate actions
- Manage sinking fund payments
- Manage factor corporate actions
- Mange exchange offer and conversion corporate actions
- Manage PIK bond corporate actions
- Manage redenomination corporate actions
- Manage cash tender corporate actions
- Manage buy sellback and sell buyback corporate actions
- Manage TRAINS spin off corporate actions
- Manage unit separation and unit split corporate actions
- Understand principal repayment corporate actions for term loans
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